CASHLESS payments are on the rise in the Philippines with 60 percent of Filipinos carrying less cash in their wallets and 84 percent having tried going cashless in 2021, according to Visa’s Consumer Payment Attitudes study.
“While cash is still commonplace in the Philippines, the preference for cashless payments is clearly gaining momentum. Our study showed more Filipinos are confident to get by without cash and for longer periods of time — with more than half feeling confident to get by for a week or longer as cashless payment options grow,” Dan Wolbert, Visa country manager for the Philippines and Guam, said at the study’s launch on Tuesday.
The Visa report said becoming cashless provides Filipinos with security, ease and the ability to effortlessly track their financial records. Bill payments, grocery spending and retail purchasing are the spending categories that are driving the country’s cashless transition.
“Filipinos believe Covid-19 has accelerated the country’s transition to a cashless society by at least three years. Now, seven out of 10 consumers anticipate that the Philippines can become fully cashless within the next seven to 10 years,” Dan added.
The study said cashless payment usage in the Philippines is growing across a number of payment alternatives, with Filipinos preferring mobile wallets (64 percent), card payments online (52 percent), card payments at physical shops (44 percent) and QR payments (31 percent).
This demonstrates the pandemic has accelerated the adoption of cashless payment options, particularly mobile wallets and online card purchases, with a huge number of first-time users.
Contactless payments, on the other hand, are considered as a new payment technique in which customers have shown strong interest, the Visa report underscored. Last year, 83 percent of Filipinos are aware of contactless payments and 69 percent have used them, up from 66 percent in 2020.
The pandemic remained the primary engine of online buying growth in 2021, particularly digital transactions done through e-commerce applications. More people are turning to online shopping and, for the first time, using apps or websites to shop.
The study said movement restriction increased in-home spending in the previous year, including for home office equipment, consumables, personal care items and content platform subscriptions. Home delivery remained popular, with one-third of customers opting for it for the first time.
From August to September last year, the Visa Consumer Payment Attitudes study polled 1,000 Filipinos in Manila, and the provinces of Cebu, Cavite, Rizal and Bulacan via an online survey to examine consumer payment patterns and interest in new payment solutions.